[Updated at 5 p.m. Jan. 19 with details of the project's financing] Jared Kushner’s Kushner Companies and Los Angeles-based CIM Group closed yesterday on the $50 million purchase of a 90,000-square-foot office tower at 200 Lafayette Street, on the corner of Broome Street, a source told The Real Deal.
Kushner and CIM, who bought the building from investors John Zaccaro Sr. and John Zaccaro Jr., are planning a $20 million renovation to turn the property into state-of-the-art-office space. The building was marketed by Robert Burton, senior vice president of sales at Massey Knakal Realty Services, as well as Debra La Chance and Ariel Brenner of the Corcoran Group.
Construction will start on the project within 30 days, a source told The Real Deal, and is slated to be completed by the end of the summer. The new owners are planning to install new air conditioning and ventilation systems and new elevators, and apply for LEED Gold Certification, the source said.
Two sources also confirmed to The Real Deal that SL Green is investing around $58 million in the project, or about 65 percent of the equity. The deal will provide funds for acquisition and construction of the building.
Kushner Companies and CIM will begin seeking tenants for the building, which is currently vacant, in the next few months and have tapped Newmark Knight Frank’s David Falk to head the leasing effort, the source said.
CIM and Falk were not immediately available to comment, while Kushner declined to comment.
Despite previous reported saying that the the Zaccaros had purchased the building in 2006, (note: correction appended) they actually bought the building for $750,000 in 1980, John Zaccaro Jr. told The Real Deal.